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Minimum Wage
A constant battle in the war for votes, the Federal Minimum Wage has been brought up time and time again. The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, recordkeeping, and child labor standards affecting full-time and part-time workers in the private sector and in Federal, State, and local governments. Covered nonexempt workers are entitled to a minimum wage. Premium pay at a rate of not less than one and one-half times the regular rate of pay is required after 40 hours of work in a work week. Current rate: $5.15 an hour http://www.aflcio.org/issues/jobseconomy/overtimepay/ "In 2004, Bush enacted the biggest rollback of overtime pay rights since passage of the Fair Labor Standards Act (FLSA) in 1938, with regulatory changes that robbed some 6 million workers of the right to overtime pay. Congress repeatedly tried to block Bush’s overtime take-way with six bipartisan votes and millions of workers wrote their lawmakers in opposition to Bush’s overtime take-away—but the Bush administration implemented it anyway. During a 2004 congressional hearing on the overtime rule changes, Ross Eisenbrey, vice president of the nonprofit Economic Policy Institute, concluded, “All in all, the rule means longer hours and less pay for millions of workers.” This year, Bush will push for new legislation to allow employers to substitute compensatory time off for time-and-a-half overtime pay. The White House also is likely to push a so-called “flex-time” bill to replace the 40-hour workweek with an 80-hour, two-week pay period. Both proposals would force employees to work longer hours for less pay, unions and other workers’ advocates say." Pro Minimum Wage Increase *While minimum wage may be enough to satisfy the needs of a student working part time, or a college student home for the summer, it is not enough to support an adult with a family. *There are some working families living in poverty *Many minimum wage earners are senior citizens forced back into the work force because cost of living increases have outstripped their Social Security and/or pension benefits. These are people with a "skill" but who are considered a liability by employers of skilled people. They have to resort to unskilled jobs in order to afford basic necessities. Since the minimum wage's real value is as low as it has been since the fifties, it doesn't buy much for anyone. It's ironic that some seniors are making as much in real dollars as they did in the fifties. Anti Minimum Wage Increase *Minimum wage inhibits the employer and employee's freedom to make a contract suiting them. *If businesses (especially small businesses) had to suddenly pay their employees significantly more, they might have to either lay off employees or go out of business. Thus, raising the minimum wage has the potential to increase unemployment, which may be a worse outcome for many employees than low pay. *In order to increase wages, businesses in some sectors could simply pass the cost on to the customers. This may negate some of the alleged benefits of the increased wage level, and would also be detrimental to consumers of markets affected by the increased wage levels. *Increasing the minimum wage may have a negative impact on the natural economic forces which encourage workers to acquire skillsets that result in higher wage levels. State Minimum Wage About half the states have their own minimum wage laws. Where Federal and state law have different minimum wage rates, the higher standard applies. Alaska $7.15/hr Premium pay after designated hours: 8 hrs/day, 40 hrs/week California $6.75/hr Kansas $2.65/hr Premium pay after designated hours: 46 hrs/week Pennsylvania For businesses with 11 or more employees: * By Jan. 1, 2007 the minimum wage must be raised to $6.25 an hour * By July 1, 2007 the minimum wage must be raised to $7.15 an hour For businesses with 10 or less employees: * By Jan. 1, 2007 the minimum wage must be raised to $5.65 an hour * By July 1, 2007 the minimum wage must be raised to $6.65 an hour * By July 1, 2008 the minimum wage must be raised to $7.15 an hour Is Minimum Wage a Livable Wage? :The Minimum Wage is just that, a minimum that an employer must pay that prevents them from taking advantage of their employees. It is not a "livable wage," but a wage for those getting their first job. A high school student flipping burgers doesn't require a livable wage, but only a fair wage. ::Unfortunately, in the U.S., it isn't just teenagers flipping burgers. If the only jobs in some communities are service industry and the jobs won't pay much more than minimum wage, what incentive is there for a family in poverty but to put their hand out for welfare or to resort to crime? If it isn't a livable wage, it should be. :::increase minimum wage doesn't solve anything, employers will just raise the price. 70.48.250.45 21:04, 13 July 2006 (UTC) The question of whether the minimum wage constitues a livable wage can be answered only when the surrounding context is considered. Cost of living and family composition are two factors which strongly impact this calculus. The federal minimum wage may be enough to get by on in an area with low housing costs, but may not be in more competitive housing markets. This same minimum wage may be enough to live on independently, but may not be enough to feed and clothe a family of four or more, even with two wage-earners working full-time at this minimum hourly rate. Supplemental income, in the form of payments from one's Social Security benefit or from Temporary Assistance for Needy Families (TANF), also impacts this calculation. Category: Public benefit Category:Economy